AeroVironment (AVAV) is trading lower on March 30, 2026 as the market continues to digest the company’s disrupted outlook tied to the Space Force’s SCAR program, specifically the BADGER phased-array antenna effort. The key issue for investors is revenue and backlog visibility after the U.S. government indicated it intends to proceed with a termination for convenience of the BADGER agreement while leaving open the chance to compete for future SCAR work.

The company disclosed that during negotiations with the U.S. government regarding the SCAR-related Other Transaction Agreement for BADGER, it was informed the government intends to terminate the agreement for convenience, while allowing AeroVironment to compete going forward. Earlier reporting also highlighted a mutual stop-work order on the BADGER effort, reinforcing the market view that SCAR/BADGER timing and contract structure have become a central risk to near-term results.

Even after the initial sharp repricing earlier in March, incremental down days can persist when investors have limited clarity on (1) replacement revenue timing, (2) margin implications if future SCAR work shifts to more competitive terms, and (3) how quickly the Space segment stabilizes after disruption. This uncertainty was compounded in the latest quarter by a large goodwill impairment tied to the Space segment and a weaker outlook, keeping the stock sensitive to any follow-on commentary or analyst recalibration.

Investors will be watching for any concrete update on SCAR recompete timing and AeroVironment’s positioning to win follow-on awards, along with any revisions to fiscal-year expectations and segment margin trajectory. Analyst actions have already referenced the contract termination as a driver of price-target changes, and additional notes can move the stock while SCAR remains unresolved.